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IRS Audits

Chapter 5. TE/GE AIMS Manual

Section 3. TE/GE AIMS Special Processing Procedures

4.5.3  TE/GE AIMS Special Processing Procedures

4.5.3.1  (06-01-2003)
AIMS Special Processing Procedures

  1. Background and information about the Audit Information Management System (AIMS) as it relates to TE/GE and instructions on how to report AIMS problems are contained in this section. This section also provides instructions for the ESS Tax Examiners in processing the more complex TE/GE examination and Appeals adjustments.

  2. AIMS is a computerized system used to secure returns, maintain inventory control of examinations, record examination results, and provide management with the statistical reports required under examination and compliance programs. Under AIMS, extensive use is made of the Integrated Data Retrieval System (IDRS) terminals located in ESS area of each area office. See IRM 4.4, AIMS/Processing, Exhibit 4.4-1, Reference Guide which has been developed to provide a quick explanation of AIMS terms.

  3. The AIMS data base was merged with the Taxpayer Information File (TIF) under the Service Center Replacement System (SCRS). The AIMS modules of the TIF are assessable to TE/GE in exactly the same manner as the AIMS data base. Under SCRS, AIMS became a two purpose data base:

    1. On-Line-Realtime - corrections/adjustments to the organizations’ status, tax and/or penalties

    2. On-Line-Realtime - input capabilities for various Management Information Reports (MIR’s).

     

  4. The Taxpayer Information File (TIF) is maintained in the Ogden Campus Center (OSC). The TIF contains an account for every examination charged to TE/GE.

    1. EP accounts originate from the Employee Plans Master File (EPMF) and the Business Master File (BMF) at the Martinsburg Computing Center (MCC) and Non-Master File (NMF) accounts that are not available from EPMF.

    2. EO and GE accounts originate from the Business Master File (BMF) and Individual Master File (IMF) at MCC and NMF accounts that are not available from BMF or IMF.

     

  5. The Enforcement Revenue Information System (ERIS) was implemented and includes data from existing AIMS, the BMF, the EPMF and the IMF. ERIS is designed to account for both revenues collected and costs incurred as a result of IRS enforcement activities. It is an external data base that extracts case information from AIMS and merges it with revenue information from the BMF, EPMF and IMF. The data is amassed over a number of years to provide information such as dollars actually collected, recovery rates and length of time from start of an enforcement action through collection. The reports generated from ERIS not only allows IRS executives to better manage their enforcement areas, but also allows them to provide more accurate measures of revenue for Treasury, OMB and Congress, and for the Service’s planned budgeting/revenue forecasting model.

  6. Accounts are established on AIMS by individual, RICS (Returns Inventory and Classification System) or by direct intervention of the BMF, automatic and related return selections. Accounts on AIMS are updated and closed through the terminal. Updating of master files to reflect the results of examinations recorded on AIMS is done at MCC.

    1. BMF, EPMF and IMF are updated through direct interaction with AIMS

    2. NMF is updated manually at the local Campus Center

     

  7. AIMS provides automatic assessment verification of TE/GE accounts residing on the EPMF, BMF and IMF.

  8. Basic inventory and closing reports are generated at Ogden Campus Center for all TE/GE Primary Business Codes. Extensive Primary Business Codes, area offices, employee groups and national level summary reports (MIR’s) are generated at the Detroit Computing Center (DCC) from the data provided by the Ogden Campus.

4.5.3.1.1  (06-01-2003)
Employee Plans Returns

  1. Employee Benefit Plans must file one or more of the following returns, unless excused by statute:

    1. Form 5500, Annual Return/Report of Employee Benefit Plan (With 100 or more participants)

    2. Form 5500C/R, Return/Report of Employee Benefit Plan (With fewer than 100 participants)

    3. Form 5500EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan

    4. Form 5330, Return of Initial Excise Taxes Related to Employee Benefit Plans

    5. Form 990T, Exempt Organization Business Income Tax Return

     

  2. In addition to the above returns, EP may also examine the following returns as Discrepancy Adjustments:

    1. Form 940, Employer's Annual Federal Unemployment Tax Return

    2. Form 941, Employer's Quarterly Federal Tax Return

    3. Form 945, Annual Return of Withheld Federal Income Tax

    4. Form 1040, U.S. Individual Income Tax Return

    5. Form 1041, U.S. Fiduciary Income Tax Return (for Estates and Trusts)

    6. Form 1042, Annual Withholding Tax Return for US Source Income of Foreign Persons

    7. Form 1065, U.S. Partnership Return of Income

    8. Form 1120, U.S. Corporation Income Tax Return

     

4.5.3.1.2  (06-01-2003)
Exempt Organizations Returns

  1. Each Exempt Organization must file one or more of the following returns, unless excused by statute:

    1. Form 990, Return of Organization Exempt from Income Tax

    2. Form 990BL, Information and Initial Excise Tax Return for Black Lung Trusts and Certain Related Persons

    3. Form 990EZ, Short Form Return of Organization Exempt From Income Tax

    4. Form 990PF, Return of Private Foundation

    5. Form 990T, Exempt Organization Business Income Tax Return

    6. Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal Revenue Code

    7. Form 5227, Split-Interest Trust Information Return

    8. Form 940, Employer's Annual Federal Unemployment Tax

    9. Form 941, Employer's Quarterly Federal Tax Return

    10. Form 942, Employer's Quarterly Federal Tax Return for Household Employees

    11. Form 943, Employer's Annual Tax Return for Agricultural Employees

    12. Form 945, Annual Return of Withheld Federal Income Tax

    13. Form CT-1, Employer's Annual Railroad Retirement and Unemployment Return

    14. Form CT-2, Employee Representatives Quarterly Railroad Retirement Tax Return

    15. Form 1040PR, Self-Employment Tax Return-Puerto Rico

    16. Form 1041, U.S. Fiduciary Income Tax Return (for Estates and Trusts)

    17. Form 1042, Foreign US Source Income

    18. Form 1065,